Understanding Transient Services Companies: Regulations and Compliance

Transient Services Companies (Art. 183 F et seq.)

These companies are lawful only when meeting legal conditions.

1. General Definitions

a) Transient Services Company

Companies providing temporary workers to businesses.

b) User

A natural or legal person contracting with a transient services company for temporary staff.

c) Transient Service Worker

A person working temporarily for business users.

2. General Standards

Oversight of work performance standards applies to both the transient company and the user.

3. Rules for Transient Service Enterprises

3.1 Prohibition of Affiliation

Transient companies must not have ties with business users.

3.2 Obligation of Guarantee (Art. 183-J)

Companies must provide a permanent guarantee to the Department of Labor. The amount is 250 units, plus increments based on the number of temporary workers hired.

3.3 Registration Requirement (Art. 183-K)

Transient services companies must register with the Department of Labor. Their name must include "Transient Services Company" or "EST".

3.4 Penalty (Art. 183-L)

Any company operating as an EST without registration will be penalized.

3.5 Cancellation of Registration (Art. 183-M)

The Director of Labor can cancel registration for:

• Repeated and serious breaches of employment or pension legislation.
• Failure of the company, unless business continuity is decreed.

4. Contract for Workers

4.1 Definition Rule

The same rules apply as for previously named contracts.